Vietnam glistens as gold sales soar to record high
SINGAPORE - Vietnam glistened as Southeast Asia's top performer in terms of gold demand and
investment last year, with Singapore failing to shine, the World Gold Council said in a
report received here Thursday.
Sales of jewelry, gold bars and coins in the region covering Indonesia, Thailand,
Vietnam, Malaysia and Singapore reached 285.2 tonnes in 2001, up 7.0 percent from
the previous year, it said.
"Investors continued actively to purchase gold both as a hedge against uncertainty in the
wake of the September 11 attacks (on the United States) and as an alternative
investment to less rewarding bank deposits," the council said.
Jewelry accounted for 76 percent, or 216.8 tonnes, of the total while investment soaked
up 68.4 tonnes, or 24 percent.
"Vietnam was the star performer in Southeast Asia, posting a new all-time high for both
investment and jewelry demand in 2001," the report said.
After a strong fourth quarter, gold demand in Vietnam rose to a new high of 73 tonnes in
2001, up from the 60 tonnes the previous year.
Sales of jewelry, gold bars and coins in Thailand rose 3.0 percent to 69.3 tonnes last
year, up from 67.5 tonnes in 2000.
In Indonesia, they managed to edge up only 1.0 percent year-on-year to 108 tonnes due
to a 20 percent depreciation of the rupiah against the US dollar and an increase in the
local price of gold.
Malaysia managed an 8.0 percent increase in gold demand to 22.7 tonnes.
Singapore was the "under-performer" of the region in the December quarter when
demand fell 16 percent, wiping out the gains in the previous three quarters.
Overall, gold demand in Singapore totaled 12.2 tonnes, just a notch above the 12.1
tonnes the previous year.
"Higher unemployment levels and a shaky economic background served to weigh down
demand in both the investment and jewelry sectors," the report said.
Singapore's economy fell into a recession last year, with gross domestic product
contracting by 2.2 percent from 9.9 percent growth in 2000.
In the Greater China region covering mainland China, Hong Kong and Taiwan, gold
demand shrank 9.0 percent to 298.3 tonnes in 2001.
A 35 percent drop in Taiwan and a 10 percent decline in Hong Kong pulled down the
Greater China region's total, despite a 3.0 percent rise in demand in China itself.
For Taiwan, "October's wedding and year-end present-giving seasons failed to combat
the absence of demand for gold jewelry," the report said, adding that there was an
increase in the recycling and trading-in of old jewelry.
World demand fell by 2.0 percent, the report said.
Agence France Presse - February 21, 2002.
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